Dundee have finally sacked manager Alan Kernaghan and assistant Billy Kirkwood after a four-day stand-off.
Kernaghan had been at Dens Park since September
Kirkwood has accepted a compensation offer from the club, who have struggled in Division One this season.
But Kernaghan has rejected Dundee's terms and put the matter in the hands of his lawyer.
The pair had been told on Monday that they were no longer wanted, but they had refused to leave until a compensation package was agreed.
Kernaghan had 13 months of his contract remaining and believes he is due about £50,000.
But he is thought to have been offered just £5,000, with chief executive Peter Marr warning that a compensation package was limited by a dire financial position.
Former Republic of Ireland defender Kernaghan agreed a two-year deal in September after replacing Jim Duffy, whose side had been relegated last season.
A Dundee statement said: "After taking professional advice and considering all matters carefully, Dundee Football Club has terminated the contract of manager Alan Kernaghan and reached agreement with assistant Billy Kirkwood over a compensation package.
"The board has asked captain Barry Smith and fellow defender Bobby Mann to take charge of team matters until the end of the season with assistance from coach Gordon Wallace.
"Applications will be invited for the post of manager and a further announcement made in due course."
Kernaghan, who did well in charge of Clyde and was briefly second in charge at Livingston, had hoped that he and Kirkwood would be given more time to turn the side around.
He last week criticised his senior players, saying that about 10 first-team regulars would be axed in the summer.
But he praised the young players who have recently broken into his side and also lifted their under-19 league title, saying that they hinted at a brighter future.
Dundee reached the Scottish Cup semi-finals but lost to Second Division champions Gretna and lie seventh in Division One, 33 points behind champions St Mirren.
Jocky Scott is a strong tip for his third managerial spell at Dens Park on a longer-term basis.
However, Marr has said he will not rush into an appointment.